KARACHI: The Sindh High Court (SHC) has adjourned the hearing of an income tax reference filed by commissioner Inland Revenue Zone-V, challenging impugned verdict of the Customs Appellate Tribunal Karachi for recovery of disputed amount of Rs 2,604,090,956 from M/s Arabian Sea Enterprises.
A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Nazar Akbar, heard the appeal.
Earlier, counsel for the applicant stated that the above mentioned taxpayer is engaged in the business of hotel management in the name and style of Arabian Sea Enterprises. The taxpayer’s case was selected for audit under section 2 14C of the Income Tax Ordinance, 2001 and the audit was completed by the Deputy Commissioner Inland Revenue Audit-IV, Zone-IV, LTU Karachi while amending the deemed assessment order and assessing taxable income and creating tax demand at Rs 1,871,038,120 and Rs 733,052,836 respectively.
According to the applicant, being aggrieved taxpayer filed an appeal before commissioner Inland Revenue Appeals-I Karachi which deleted the additions made by the tax department, however, being aggrieved and dissatisfied with the decision of the Commissioner Inland Revenue Appeals-I, Karachi the tax department filed an appeal before Appellate Tribunal which vacated the order of the Commissioner Inland Revenue.
Citing M/s Arabian Sea Enterprises as respondent, counsel pleaded the court may set aside impugned judgment of the concern authority and restore it order for recovery of said amount.
